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Cindy is taking out a loan today. The cash amount that she is receiving is equal to the present value of the lump sum payment

Cindy is taking out a loan today. The cash amount that she is receiving is equal to the present value of the lump sum payment that

she will be required to pay two years from today. Which type of loan is this?

Select one:

.

Compound

.

Principal

-

only

.

Interest

-

only

.

Pure discount

.

Amortized

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